How are Anglo American going to pay for the De Beers stake? Remember last week when Cynthia Carroll said that the deal would be self funded? Well, this is how it is going to be self funded, according to Bloomberg -> Anglo Sells $5.39B Chilean Stake to Mitsubishi. Huh? 24.5 percent for 5.39 billion Dollars is a lot more than what Codelco thinks that it is worth, remember just four weeks ago this announcement -> Anglo American could be a forced seller of their premier copper asset. Codelco reckon that 49 percent is worth 9.76 billion Dollars, valuing the Anglo copper assets at 19.91 billion, Mitsubishi price for that stake values the asset at 22 billion Dollars. Well, that is the way that I understand it, Mitsubishi have paid over ten percent more than Codelco's formula.
Do not worry, I am also very confused. Does this mean that Anglo are going to end up with more cash and only one quarter of the asset? Perhaps, if Codelco do exercise their long standing option. And even if Anglo get a lower price for that asset from Codelco based on "the formula", it seems like the De Beers purchase (and effective swap) is too good to be ignored. Yes, no, maybe, how do I know the answer to that? I can only guess that answer. We won't have to wait very long for the answer, January next year. And if you needed reminding, 44 days until Christmas. WHAT????? You can get me absolutely nothing this year, or next year. Give it to the kids!